Volkswagen ups job cuts to 100,000 by 2030 as part of sweeping cost-saving overhaul
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By ANGHARAD CARRICK, BUSINESS NEWS EDITOR
Updated:
The board of Volkswagen has agreed to cut 50,000 more jobs by 2030 as part of a sweeping restructuring programme in an attempt to counter the impact of tariffs and competition from Chinese rivals.
The German group – which includes Audi, Porsche, Skoda and the VW brand – said the overhaul would be ‘the most extensive transformation programme’ in its 89-year history.
The planned job cuts, which include the 50,000 already agreed, mean a reduction of 100,000 positions by the end of 2030.
The firm, which employs around 660,000 people, did not offer further details on the timing of the job cuts or how they would be distributed across its brands and regions.
Volkswagen also outlined plans to halve its vehicle line-up by the end of the decade, prioritising the ‘most compelling vehicles’ and aiming to make more of each model to help lower costs.
A ‘fundamental adjustment of the global workforce capability is necessary’ to preserve the competitiveness of the company, it said.
Volkswagen plans to cut jobs and halve its vehicle line-up in a bid to counter falling sales
Volkswagen has been hit hard by falling sales in China, once one of its biggest markets, amid rising competition from domestic brands such as BYD. Meanwhile, US sales have declined partly due to the impact of President Donald Trump’s tariffs on car imports.
‘This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide,’ Blume said.
The Wolfsburg-headquartered company is also considering the future of four of its German plants, where it said production capacity exceeds demand.
Blume said no new models would be allocated to the Emden, Zwickau, Hanover and Neckarsulm plants unless costs could be brought down.
The ‘Future Plan’ averts a clash with unions and its second-largest shareholder Lower Saxony, which had been in talks since Blume’s plan first emerged in June.
On Thursday, Daniela Cavallo, the chief employee representative, said it was ‘a necessity for our company to move successfully into the next decade without the associated undertakings coming only on the side of the employees.’
Shares in Volkswagen rose 7 per cent in early trading this morning.
Tom Narayan, analyst at RBC Capital Markets, described the board and union approval as ‘a positive surprise’.
‘We think the decision is an important step towards making VW more cost-competitive with Chinese original equipment makers aggressively expanding in Europe,’ he said.
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